April 21, 2021
Investor's Insight are my comments about each of the headlines in the weekly Market RoundUp videos, available in real time to clients of Harasymiw Investments of ACPI only. These excerpts are released for general viewing four months after initial private release. To learn more about partnering with Harasymiw Investments of ACPI to help guide your investment portfolio, get started here.
Five years ago, in the first few months 2016, Canada fairly quietly sold off the rest of its gold reserves. To date, we continue to have zero official gold reserves, which is odd given that Canada is one of the top producers of gold in the world. Apparently, we don’t believe in what we’re selling.
On the flip side, one of the top global producing countries of gold, if not the top producer, continues to feed what seems to be its insatiable appetite for the yellow metal. But that producer also harbors a Communist regime so getting a concrete grasp of Chinese demand for gold is nearly impossible. What isn’t difficult to ascertain is China’s objective of commandeering global reserve currency status from the US. And for many years, one of its primary tactics in doing so revolves around the 5,000 year old “relic”, gold.
Now, we can get into a discussion about how they’re planning on using gold, especially with the advent of cryptocurrencies, and whether it’s the right choice strategy or not. But what I believe is important to highlight is that while some countries, such as Canada, continue to take on a Keynesian view that gold is a barbaric relic no longer worthy of status in the monetary world, other countries, like China, with views of shifting the global political and economic powerbase to their favor, are embracing that “barbaric relic”.
So, when it comes to a question about investing in gold within a long-term investment strategy, it would serve us well to take notice and not merely sweep aside the glittering metal. Winds of monetary change, whether we like it or not, are afoot. We must not ignore that reality, and prepare for different possibilities.